The UK government is considering subsidising a 320-megawatt Swansea Bay Tidal Lagoon energy project in Wales, which when completed will be the world’s largest tidal power plant.
Chancellor of the Exchequer George Osborne said during his budget speech that the government will start negotiations with the developer of the US$1.5 billion project. The government will have to determine the economic viability of the project before making a decision, Osborne said.
InfraRed Capital Partners and Prudential are amongst investors in the project, which is awaiting final consent from the government.
Marine energy development projects are still in their infancy stages and have not reached the commercial stage that other technologies like wind and solar have. The cost of producing power could be double that of wind and make projects like Tidal Lagoon not feasible without government assistance.